ETFs to Buy as AMD Shares Slip After-Hours Despite Q3 Earnings Beat

Core Viewpoint - Advanced Micro Devices (AMD) shares experienced a decline despite exceeding analysts' expectations for earnings and revenue, primarily due to Amazon's decision to dissolve its stake in the company [1][2]. Financial Performance - AMD's third-quarter earnings surpassed the Zacks Consensus Estimate by 2.6%, with revenues exceeding expectations by 6%. Year-over-year, revenue increased by 36%, and net income surged by 60% [6]. - The Data Center, AI, Server, and PC segments drove broad-based demand, contributing to the growth in the reported quarter [6]. - The company reported cash and cash equivalents of $4.81 billion at the end of September 2025, up from $3.79 billion at the end of December 2024. Free cash flow more than tripled, driven by record sales of EPYC, Ryzen, and Instinct processors [7]. Product Developments - AMD launched ROCm 7 software, its most advanced release, which enhances distributed inference and code portability across hardware [8]. - The company expanded its x86 embedded portfolio with the EPYC Embedded 4005 series and Ryzen Embedded 9000 processors, targeting network security and industrial applications [9]. - Upcoming product launches include the next-generation 2-nanometer Venice processors and MI400 Series accelerators, with Oracle as a lead launch partner for the MI450 Series [10]. Investment Opportunities - For investors seeking exposure to AMD while mitigating risks, Exchange-Traded Funds (ETFs) with significant AMD holdings are recommended [4]. - Notable ETFs include: - iShares Semiconductor ETF (SOXX), with AMD holding 9.97% and a year-to-date gain of 38.3% [12]. - Invesco PHLX Semiconductor ETF (SOXQ), with AMD holding 9.87% and a year-to-date gain of 40.9% [13]. - Invesco AI and Next Gen Software ETF (IGPT), with AMD holding 10.56% and a year-to-date gain of 31% [14].